Latest news with #DirkVandePut
CNBC
30-07-2025
- Business
- CNBC
Mondelēz CEO: Cocoa prices have been 'unprecedented'
Dirk Van de Put, Mondelēz International chairman and CEO, joins CNBC's 'Money Movers' to discuss the company's most recent earnings report.
Business Insider
30-07-2025
- Business
- Business Insider
Oreo-maker Mondelez CEO says Americans are buying fewer snacks: 'There's a lot of consumer anxiety'
Americans are getting more cautious about spending on even small treats like Oreo cookies. Mondelez, the company that makes Oreos and Chips Ahoy, said that revenue and sales volumes in the US fell during the company's second quarter. The continued threat of tariffs and the state of the economy were major reasons shoppers cut back, CEO Dirk Van de Put said. "There's a lot of consumer anxiety," Van de Put said on a call after the company reported results Tuesday. Shoppers face an "uncertain outlook as it relates to their personal finances, job expectations, inflation, so they tend to focus more on essential items," he said. Many customers are buying smaller packs of cookies that cost more per unit than bigger family-sized packages, Van de Put said. That's leading to a decline in the volume of snacks sold in the US. Mondelez's North American sales fell 3.5% year over year during the second quarter. Consumers in the US have some reasons to watch their spending. Companies from Conagra to Walmart have said they plan to pass along some of the costs of the Trump administration's planned tariffs to customers, which could lead to higher prices at stores. Tariffs also may have led to fewer Mondelez products on shelves at retailers, Van de Put said on Tuesday's call. He said that while some stores stocked up on items that were set to be hit with tariffs over the last few months, they sought to offset those costs by holding off on purchases of non-tariffed goods such as snacks. "Tariffs were coming," Van de Put said. "They probably wanted to import more from the countries that were going to be affected." Some shoppers are also still feeling the pressure from years of high post-pandemic inflation. Many food makers raised snack prices as input costs rose, but have seen consumers pull back their spending in the last year or so. "There's an overall slowdown in food consumption and also in snacking," Van de Put said. said. Other evidence suggests that consumers are still willing to spend on food in certain settings. Recent research by Bank of America suggests that many diners are still spending on meals at restaurants — even as they tell pollsters that they are cutting back on eating out to save money.
Yahoo
30-07-2025
- Business
- Yahoo
Mondelez (NASDAQ:MDLZ) Beats Q2 Sales Targets
Packaged snacks company Mondelez (NASDAQ:MDLZ) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 7.7% year on year to $8.98 billion. Its non-GAAP profit of $0.73 per share was 7.7% above analysts' consensus estimates. Is now the time to buy Mondelez? Find out in our full research report. Mondelez (MDLZ) Q2 CY2025 Highlights: Revenue: $8.98 billion vs analyst estimates of $8.86 billion (7.7% year-on-year growth, 1.4% beat) Adjusted EPS: $0.73 vs analyst estimates of $0.68 (7.7% beat) Adjusted EBITDA: $1.78 billion vs analyst estimates of $1.53 billion (19.8% margin, 16.1% beat) Operating Margin: 13%, up from 10.2% in the same quarter last year Free Cash Flow Margin: 0%, down from 5.5% in the same quarter last year Organic Revenue rose 5.6% year on year (2.5% in the same quarter last year) Sales Volumes fell 1.5% year on year (2.2% in the same quarter last year) Market Capitalization: $90.09 billion 'We posted accelerated top-line growth in Q2 2025 underpinned by strong pricing execution in our chocolate business and robust growth across the vast majority of our geographies,' said Dirk Van de Put, Chair and Chief Executive Officer. Company Overview Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $37.11 billion in revenue over the past 12 months, Mondelez is one of the most widely recognized consumer staples companies. Its influence over consumers gives it negotiating leverage with distributors, enabling it to pick and choose where it sells its products (a luxury many don't have). As you can see below, Mondelez's sales grew at a decent 7.5% compounded annual growth rate over the last three years despite selling a similar number of units each year. We'll explore what this means in the "Volume Growth" section. This quarter, Mondelez reported year-on-year revenue growth of 7.7%, and its $8.98 billion of revenue exceeded Wall Street's estimates by 1.5%. Looking ahead, sell-side analysts expect revenue to grow 6.9% over the next 12 months, similar to its three-year rate. This projection is above the sector average and implies its newer products will help sustain its historical top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Volume Growth Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there's a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. To analyze whether Mondelez generated its growth from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations. Over the last two years, Mondelez's quarterly sales volumes have, on average, stayed about the same. This stability is normal as the quantity demanded for consumer staples products typically doesn't see much volatility. The company's flat volumes also indicate its average organic revenue growth of 6.4% was generated from price increases. In Mondelez's Q2 2025, sales volumes dropped 1.5% year on year. This result represents a further deceleration from its historical levels, showing the business is struggling to move its products. Key Takeaways from Mondelez's Q2 Results We were impressed by how significantly Mondelez blew past analysts' EPS and EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its volumes shrank and its gross margin missed due to continued cocoa cost inflation. Overall, we think this was a decent quarter. The market seemed to be hoping for more, and the stock traded down 3.3% to $67.45 immediately following the results. Should you buy the stock or not? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Bloomberg
29-07-2025
- Business
- Bloomberg
Stock Movers: Mondelez, Booking, Chart Industries
On this edition of Stock Movers: - Mondelez (MDLZ) shares are down in after hours trading. While the company posted quarterly results that topped estimates, they reiterated their guidance. Mondelez reported better-than-expected sales for the second quarter, citing strong pricing execution in its chocolate business. The owner of the Oreo, Ritz and Cadbury brands reported adjusted earnings per share of 73 cents, topping analysts' expectations for 68 cents. Sales totaled $8.98 billion, better than the $8.84 billion that analysts had expected. Chief Executive Officer Dirk Van de Put said the company remained confident in its ability to deliver 'amid a challenging environment' and cited 'robust growth across the vast majority of our geographies.' - Booking Holdings (BKNG) shares are down in after hours trading. The company delivered a disappointing forecast for the third quarter, citing 'increased uncertainty in the geopolitical and macroeconomic environment.' The online travel agent, which operates the Kayak, Priceline and brands, said that room nights growth will be roughly 4.5% in the period. Analysts had estimated 5.5% on average, according to data compiled by Bloomberg. The underwhelming report signals that travelers may be reining in spending as they face trade conflicts and an unpredictable economy. - Chart Industries (GTLS) shares soared today. The reason why the stock was up is because Baker Hughes Co. agreed to buy the industrial equipment maker for about $9.6 billion in cash, expanding the oilfield service giant's reach into liquefied natural gas, data centers and other technologies. The deal announced early Tuesday calls for Chart investors to receive $210 per share, a 22% premium over Monday's closing price. The agreement puts an end to Chart's previous plan to merge with Flowserve Corp. The move consolidates Baker Hughes' position in the booming LNG sector and is a significant bet on the outlook for US energy growth amid a slowdown in domestic oil drilling. Electricity demand in the world's biggest economy is expected to surge in coming years, driven by the expanding artificial intelligence industry.
Yahoo
18-06-2025
- Business
- Yahoo
MDLZ Q1 Deep Dive: Cocoa Inflation Drives Pricing Actions, U.S. Demand Remains Soft
Packaged snacks company Mondelez (NASDAQ:MDLZ) met Wall Street's revenue expectations in Q1 CY2025, but sales were flat year on year at $9.31 billion. Its non-GAAP profit of $0.74 per share was 12.2% above analysts' consensus estimates. Is now the time to buy MDLZ? Find out in our full research report (it's free). Revenue: $9.31 billion vs analyst estimates of $9.31 billion (flat year on year, in line) Adjusted EPS: $0.74 vs analyst estimates of $0.66 (12.2% beat) Adjusted EBITDA: $1.7 billion vs analyst estimates of $1.54 billion (18.2% margin, 10.6% beat) Operating Margin: 7.3%, down from 29.4% in the same quarter last year Organic Revenue rose 3.1% year on year (4.2% in the same quarter last year) Sales Volumes fell 3.5% year on year (-2.1% in the same quarter last year) Market Capitalization: $85.91 billion Mondelez's first quarter was marked by stable sales and a notable profit outperformance, leading to a positive market reaction. Management attributed the quarter's results to effective pricing strategies in response to record cocoa costs, especially within its chocolate segment. CEO Dirk Van de Put explained, 'Our top line grew 3.1% behind strong pricing execution across our chocolate business due to unprecedented input costs for cocoa.' The quarter also saw continued brand loyalty, particularly for core products like Oreo and Cadbury, despite economic pressures causing U.S. consumers to shift toward value-oriented purchases. Looking ahead, Mondelez expects ongoing macroeconomic uncertainty and elevated commodity costs to shape its performance. Management pointed to further pricing actions, product innovation, and targeted activations as key levers for growth, especially in Europe and emerging markets. CFO Luca Zaramella emphasized that 'pricing across the board, whether it is chocolate in developed and emerging markets or biscuits in emerging markets, is absolutely on track,' but cautioned that U.S. consumer confidence is unlikely to rebound quickly. The company plans to maintain agility in its strategy, focusing on both cost discipline and reinvestment should commodity pressures ease. Management cited strong pricing execution in chocolate, continued investment in brand and product innovation, and mixed geographic consumer sentiment as primary factors shaping the quarter's results and ongoing strategy. Cocoa-driven pricing actions: Mondelez implemented significant price increases in its chocolate segment to offset record cocoa costs, with management emphasizing minimal disruption and elasticities in line with expectations. The pricing strategy included tiered pack sizes and protected entry-level price points in key markets. Volume declines from elasticity and destocking: The company experienced a 3.5% volume decline, driven by consumer sensitivity to higher prices, retailer inventory reductions in North America, and seasonal timing shifts related to Easter. Management noted that U.S. biscuit volumes faced additional pressure from lower consumption and value-seeking behavior. Emerging market performance varies: While China and Brazil delivered strong results, India and Southeast Asia saw softer demand due to economic uncertainty and inflation. Management expects emerging markets to accelerate in the second half of the year through distribution gains and targeted promotions. Brand and product innovation: Mondelez launched several notable activations, including Oreo's partnership with Post Malone and the Cadbury Dairy Milk Biscoff bar. These initiatives are part of a broader effort to maintain consumer interest and drive share gains despite external pressures. Agility in cost management: The company delivered ahead-of-schedule productivity improvements, particularly in procurement, and opportunistically secured better input pricing for some commodities. Management indicated that any future margin upside from easing cocoa costs would likely be reinvested to support long-term brand health. Mondelez's outlook is guided by ongoing pricing initiatives, cost discipline, and a focus on adapting to shifting consumer sentiment across regions. Sustained pricing and RGM strategy: Management reiterated its commitment to a revenue growth management (RGM) approach—offering a range of pack sizes and price points tailored to regional consumer needs. The company expects continued pricing actions to offset commodity pressures, with elasticity and consumer response closely monitored, especially in Europe and emerging markets. Consumer confidence and U.S. demand: Mondelez remains cautious about U.S. consumer sentiment, noting ongoing value-seeking behaviors and lower frequency of snacking purchases. Management does not anticipate a near-term rebound in U.S. demand, and plans to focus on affordable formats, promotional activations, and multi-pack offerings to stabilize share and volumes. Potential margin reinvestment: Should cocoa prices moderate, management intends to reinvest some of the resulting margin improvement into brand support and innovation, rather than prioritizing short-term profit gains. This approach is designed to ensure long-term competitiveness and sustained category health. In the quarters ahead, the StockStory team will be watching (1) how effectively Mondelez sustains its pricing strategy while managing elasticity and consumer pushback, (2) whether volume trends in the U.S. biscuit and chocolate segments stabilize as retailer destocking subsides, and (3) acceleration in emerging market growth, particularly in India and China. The outcome of cocoa price movements and any resulting adjustments to reinvestment priorities will also be key indicators for the company's trajectory. Mondelez currently trades at $66.41, up from $65.58 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. 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